For tech IPIS, this is a year that has been lackluster, an inundation of venture capital money and a rising regulation has been seen. However according to the Former Apple chief evangelist, Guy Kawasaki stated that it does not indicate success by offering new stock which is lull for the young companies of Silicon Valley.
While talking to CNBC, Kawasaki said that a company’s purpose is creating a service or product that is great or even creating a customer. Going public is not how success can be defined however it is a natural outcome. The attention of venture capitals have been grabbed by Unicorns and the involvement of individual investors are a lot less. In the US, around 31 companies so far have gone public. This has come down from 2014’s 115 and 2015’s first 5 months of 69. The CEO and founder of LUMA Partners, Terry Kawaja said the reason why new stock offerings have crashed is due to the change in private financing. At the relatively earlier stages high beta companies used be financed by Venture capital.
Now the availability of the money is not just at its growth, however it is also to the later stages. This allows companies to stay private. The beta of these companies cannot be participated by the public. One of the concerns that Kawasaki has is that a harder time may be faced by private companies while retaining or recruiting employees just in case they do not go public.
He has also warned the temptation to flee against more established Apples and Goggles globally. The world that we got during the early public period will not be got if a person goes into those companies. It is more about the intellectual challenge and career opportunity that is provided by the company. It is just not about sitting and looking at a spreadsheet to see where more money can be made by an individual.